Smurfit eyes Venepal

Smurfit Carton de Venezuela planned to assist Venepal the heavily indebted producer. An agreement is signed by creditor banks, Jefferson Smurfit and Venepal which gives Smurfit a 60 day window to complete due diligence. Smurfit may negotiate with Venepal's creditors to take over a 64% stake currently held by banks, following the review period. Venepal converted half of its $76 million debt into bonds two years ago on the condition of finding a strategic partner before September 2001. Creditor banks will take control of the majority stake of Venepal if no strategies partners were found.